Original article posted on Dec 8, 2022 by Jon Manchester available on castanet.net.
Kelowna cannabis company Avant Brands has announced a multimillion-dollar deal to buy The Flowr Group (Okanagan) Inc.
The deal is worth $4.015 million plus $1.1 million in shares of Avant and will increase Avant’s combined facilities to approximately 185,000 square feet.
The company says the purchase will increase its production capability by 60%, making it one of the largest indoor cannabis producers in Canada.
Avant says it has entered into a definitive purchase agreement to acquire all of the issued and outstanding shares in the capital of Flowr Group (Okanagan), in connection with Flowr’s insolvency.
“Over the course of the last year, the Avant team has been seeking investment or acquisition opportunities which would enable us to utilize our strong balance sheet in a manner which maximizes shareholder value,” says CEO Norton Singhavon.
“We are extremely pleased with the outcome of Flowr’s restructuring process, as we have always viewed their Kelowna facility as a top-tier and world-class asset that would be an ideal fit for the Avant portfolio.”
Closure of the transaction is subject to conditions including regulatory approvals and is expected to be finalized in the first quarter of 2023.
Avant will advance a debtor-in-possession loan in the amount of $2 million in connection with the Flowr Group’s filing for court protection.
Avant’s sales channels include recreational, medical and export under a number of brand names.
The company trades on the Toronto Stock Exchange, and cross-trades on the OTCQX Best Market and Frankfurt Stock Exchange, and has operations in British Columbia, Alberta and Ontario